The Central Bank of Kenya (CBK) has opted to maintain its base rate at 13 per cent for the coming month.

This decision comes amid positive economic indicators, including a slowdown in inflation and a strengthening of the Kenyan shilling against major global currencies.

In a statement, the CBK's Monetary Policy Committee (MPC) acknowledged the success of its previous policy measures.

"The MPC noted that its previous measures have lowered inflation, addressed the exchange rate pressures, and anchored inflationary expectations," the statement said.

This decision follows a significant drop in inflation, which fell to 5.7 per cent in March from 6.3 per cent in February. Lower food and fuel prices are credited for this positive development.

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The Kenyan shilling has also displayed remarkable resilience against the US dollar. The local currency appreciated by 16 per cent in the first quarter of 2024, reaching a new high of Sh131.8 to the dollar by the end of March.

This upward trend, according to the CBK, is linked to an increase in US dollar inflows from the International Monetary Fund (IMF).

Looking ahead, the MPC remains cautiously optimistic.

"The Committee further noted that overall inflation is expected to continue declining in the near term, supported by lower food and fuel prices, and pass-through effects of the recent exchange rate appreciation," CBK said.

However, the MPC emphasized that it will continue to monitor the impact of these policy measures.

This wait-and-see approach suggests the CBK is confident in the current economic trajectory but remains vigilant for any potential shifts.

The success of recent policies in curbing inflation and strengthening the shilling has provided a welcome respite for the Kenyan economy.